There is looming uncertainty that the South African Social Security Agency (SASSA) will be able to pay government grant beneficiaries come April 2017. The current contract with Cash Paymaster Services (CPS) expires at the end of March and the Constitutional Court (ConCourt) has declared the current Cash Paymaster Services (CPS) contract that distributes payment of grants invalid.
SASSA seem to have underestimated the work that needs to be done to take over the grant disbursements from CPS. The situation was worsened after the only three companies that responded to a tender advertised last year all failed to meet the requirements.
The National Treasury is of the view that the better option is that of appointing a service provider to distribute grants in cash and for banked beneficiaries to utilize their accounts for accessing grants. The challenge is that this option won’t allow SASSA to pay grants as early as April 2017 and can create a huge influx at paypoints.
SASSA believes that the viable option is that of putting transitional measures in place while the current tender is extended for a brief period. The challenge with extending the current contract is that the current contract was declared invalid by the ConCourt.
SASSA’s said in a statement issued 1 February 2017 that the last option is to approach the ConCourt to request it to suspend the invalidity declaration so that beneficiaries are not prejudiced.
